Construction Company Project Manager Convicted of Tax Conspiracy

Jason Pecoy, a project manager at Kent Pecoy and Sons Construction Inc., was convicted by a federal jury in Massachusetts for conspiring to defraud the United States. The case involved Pecoy, his father, Kent Pecoy, and Kevin Kennedy, who operated two municipal golf courses and purchased two custom-built homes from Kent Pecoy’s company. The conspiracy aimed to conceal income from the IRS through cash transactions.

Court documents and trial evidence revealed that Jason Pecoy received at least $600,000 in cash payments from Kennedy for a custom-built home on Cape Cod. Instead of depositing the cash into the business bank accounts, Pecoy used the funds to pay vendors and subcontractors directly. He paid approximately $149,300 under the table to subcontractors for work on the Cape Cod home. Pecoy also created and maintained separate ledgers to document Kennedy’s cash payments and produced false contracts, cost estimates, and entries in the company’s accounting system to hide these transactions.

This scheme allowed the parties involved to evade significant tax liabilities, impacting the overall revenue of the United States. The IRS’s diligent investigation uncovered these fraudulent activities, showcasing the importance of maintaining transparent financial practices. Tax evasion not only undermines the tax system but also places an unfair burden on honest taxpayers. The conviction serves as a warning to those attempting to circumvent tax laws through deceitful means.

Jason Pecoy is scheduled to be sentenced on September 12 and faces a maximum penalty of five years in prison. The final sentence will be determined by a federal district court judge after considering the U.S. Sentencing Guidelines and other statutory factors.

Kent Pecoy pleaded guilty to related tax crimes on May 17 and is scheduled to be sentenced on August 20. Kevin Kennedy was convicted and sentenced to 13 months in prison for his role in the conspiracy.

The announcement of the conviction was made by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. The IRS Criminal Investigation Division is handling the case.

Assistant Chief Eric B. Powers of the Justice Department’s Tax Division and Assistant U.S. Attorney Neil Desroches for the District of Massachusetts are prosecuting the case.

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This article, “Construction Company Project Manager Convicted of Tax Conspiracy” was first published on Small Business Trends